Reliv International, Inc., a nutrition and direct selling company, today reported its fourth-quarter and full-year 2008 earnings.
Net sales for the quarter were $22.1 million compared to net sales of $24.6 million in the fourth quarter of 2007. Net income for the fourth quarter of 2008 was $250,000 or $0.02 per diluted share, compared to net income of $697,000 or $0.04 per diluted share in the 2007 fourth quarter.
During the fourth-quarter of 2008, U.S. net sales totaled $19.4 million, down 8.0 percent from the 2007 fourth quarter. International sales, or sales outside of the United States, dropped to $2.7 million in the quarter compared to $3.5 million in the prior year quarter. Foreign currency exchange fluctuations accounted for approximately half of the reported sales decline.
Income from operations in the fourth quarter of 2008 rose to $1.3 million compared to $1.1 million the 2007 fourth quarter.
Net income and fully diluted earnings per share for the fourth quarter, excluding non-cash investment losses on a private equity fund and other investments, was $850,000, or $0.06 per share. During the quarter, Reliv incurred investment losses totaling $336,000, for which the company does not expect to receive an income tax benefit as it does not anticipate having sufficient future capital gains to offset these current year capital losses. Excluding these charges, Reliv's net income showed an improvement over the fourth quarter of 2007.
Net sales for the full year of 2008 equaled $98.2 million, down 11.6 percent from 2007 net sales. Sales outside of the U.S. rose 0.8 percent to $12.8 million. U.S. sales for 2008, however, declined 13.2 percent to $85.4 million.
Net income for 2008 was $2.9 million or $0.19 per diluted share, down from $5.0 million or $0.31 per diluted share in 2007. The 2008 results reflect one-time charges of $0.05 per diluted share from the investment losses and related tax consequences which occurred primarily in the fourth quarter. Excluding the one-time charges, diluted EPS would have been $0.24.
Net cash generated from operating activities was $4.4 million for 2008, down from $4.8 million for 2007, and we had cash and cash-equivalents of $4.5 million as of Dec. 31, 2008.
As of Dec. 31, 2008, Reliv had approximately 67,340 distributors, down 3.8 percent from Dec. 31, 2007.
Robert L. Montgomery, president, chairman and chief executive officer of Reliv, said, "We are pleased by the increase in operating income in the fourth quarter, which we achieved by reducing and controlling costs throughout the company."
"During the quarter we also had a successful introduction of GlucAffect, a new product that supports blood-sugar management and weight loss," Montgomery said. "Customers are reporting solid results from the product, and distributors are excited about it as well," he said.
"U.S. sign-ups in January 2009 were the best in nearly two years, and global sponsoring was also very strong," Montgomery said. "A successful U.S. National Conference in Fort Worth, Texas, earlier this month generated great excitement among our distributor force. The combination of sponsorship and excitement makes me optimistic as I look forward in 2009," he said.
"Our major focus in 2009 will be increasing sponsorship levels which should lead to top-line growth. Our business opportunity is a great match for many people who are looking for additional income during this recession. And Reliv makes nutrition simple by providing optimal nutrition with two shakes a day," Montgomery added.
Reliv will host a conference call to discuss fourth-quarter and year-end earnings with investors at 1:00 p.m. Eastern Time on February 25th. The dial-in number for investors is 888-680-0860. The participant passcode is 66331036. To register, please call in 15 minutes prior to start of the call. A replay of this call will be available beginning today at 3 p.m. Eastern for one week by telephone calling 888-286-8010 and using the passcode 84174618. A live web cast of this call will be available through the Investor Relations section of Reliv's Web site: http://www.reliv.com/US/EN/Conference%20Calls%20Presentations.html.
An online archive of the broadcast will be available on Reliv's Web site in the Investor Relations section 24 hours after the call concludes.
Reliv International, Inc., based in Chesterfield, Mo., is a developer, manufacturer and marketer of a proprietary line of nutritional supplements. Reliv supplements address essential daily nutrition, weight loss and targeted solutions such as energy and performance enhancement, digestive health, women's health and anti-aging. Reliv sells its products through an international network marketing system of 67,340 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.